Red Ribbon was started out as hobby-induced business in 1979, situated in Timog, Quezon City. Red Ribbon uses premium ingredients, such as real butter, high quality cake flour, and its unique Red Ribbon cream. Red Ribbon cakes have become a tradition, an integral part of every celebration – birthdays, christenings, anniversaries, and weddings.
With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered a new phase in its company history. The company will soon become the biggest and fastest-growing bakeshop in the Philippines. Its mission is to bring the joy of eating to everyone through its great-tasting food and superior quality.
In addition, the Red Ribbon franchising program has been activated since September of 1999 and has progressed consistently, bringing more stores closer to customers nationwide. All stores, franchised and company-owned follow the strict quality assurance measures of international standards assuring its customers that they will be proud of having made Red Ribbon their first choice for their family’s celebrations.
Red Ribbon turned out to be a proudly Filipino-owned and professionally-run business network. Red Ribbon has grown to over 200 outlets all over the country and over 30 stores in the US with locations in California, Las Vegas, Arizona, New Jersey and New York.
How to Franchise Red Ribbon:
Capital Investment: ranges from Php5 Million to Php6 Million
- depending on the final store size and facilities.
Capitalization includes the following:
- Initial Set-Up Fee
- Improvement/Construction
- Equipments/Fixtures/Furniture
- Pre-opening Expenses
- Hiring and Training of Store Team
Initial Set-Up Fee: Php600,000.00 (12% VAT excluded) and required upon receipt of the Franchise Grant.
Franchise Term: Five (5) years
Royalty Fee: 7% of monthly of gross sales
Advertising Fee: 3% of monthly of gross sales
The applicant will be required to submit the following:
- Letter of Intent (indicate exact address of proposed site)
- Vicinity Map of Proposed Site (include building perspective if available)
- Location map of proposed site (online maps are preferred)
- Dimension and layout of the site in sqm.
- Site pictures (clear copies)
- Proposed site should be at least 50 sqm.
- Accomplished Red Ribbon Application Forms (Download Here)
Contact Details of Red Ribbon:
RED RIBBON BAKESHOP, INC.
Franchising Department
29th Floor Jollibee Plaza Building,
#10 F. Ortigas Jr. Road, Ortigas Center
Pasig City, Philippines
Contact Person: Ms. Brigette Z. Delizo
Landline: (+02) 8982-5000 local 4152/4225
Email: [email protected]
Facebook Page: www.facebook.com/redribbonbakeshop
Visit Website (This link will open on a new window)
Basics of Franchising Red Ribbon Bakeshop
Franchising benefits
Franchisees gain access to a proven business model, established brand reputation, and ongoing support from Red Ribbon Bakeshop, reducing the risks associated with starting a new business. They benefit from collective advertising and marketing efforts conducted by the franchisor, which can result in increased customer traffic and sales. Franchisees also have the opportunity to tap into the training and operational resources provided by the franchisor, enhancing their chances of success and profitability. Below are just a few pointers why franchising Red Ribbon Bakeshop is beneficial for the inverstors:
High success rate due to its business model rather than starting from scratch.
Franchising Red Ribbon Bakeshop offers the advantage of tapping into an established reputation and customer base, which can significantly reduce the time and effort required to build brand recognition. Additionally, franchisors typically provide comprehensive training, ongoing support, and proven business models, mitigating many of the risks associated with starting a new venture.
Franchisees benefit from economies of scale in purchasing, marketing, and operational support, which can lead to cost efficiencies and improved profitability.
Overall, franchising offers a structured pathway to entrepreneurship with a higher likelihood of success compared to launching a new brand independently.
Red Ribbon Bakeshop is a recognized brand or trademark that can bring you success.
Success is achievable for franchising recognized brands like Red Ribbon Bakeshop due to their established reputation, which can attract customers more readily and build trust faster than starting a new brand. Franchisees benefit from proven business models, operational support, and marketing strategies provided by Red Ribbon Bakeshop, reducing the risks associated with independent entrepreneurship.
Additionally, being part of a well-known brand network offers access to economies of scale, collective marketing efforts, and a support system among fellow franchisees, enhancing the likelihood of success.
Availing financing from various sectors is highly likely due to a good brand reputation.
Financing is often more readily available when franchising a reputable brand due to several factors. Banks and lenders are typically more willing to provide loans to franchisees of established brands because they have a proven track record of success and lower risk compared to new, unproven businesses.
Additionally, franchisors may have relationships with financial institutions or offer financing options themselves, making it easier for franchisees to secure funding. The recognizable brand name and business model of Red Ribbon Bakeshop also provide a level of security for lenders, increasing the likelihood of loan approval and favorable terms for franchisees.
Formula for success that a franchisor may provide.
Low-cost supplies and efficient supply chain management contribute to higher profit margins for franchisees by reducing the cost of goods sold. Effective marketing increases brand visibility and customer traffic, leading to increased sales and revenue. A prime location maximizes foot traffic and accessibility, further enhancing the franchisee's revenue potential and profitability.
5 things to consider when franchising Red Ribbon Bakeshop
1 Make sure that you really want to own this franchise and this will best fit your venture among other offered business opportunities.
2 Be certain that you can work harmoniously with Red Ribbon Bakeshop franchise and it is within your interest. A visit to one of the franchise store will help you be more aware of operation and proceedings.
3 Carefully study the Terms and Condition, Franchise Agreement, and what are included in franchising Red Ribbon Bakeshop.
4 Check if Red Ribbon Bakeshop franchise will be compatible with the rules and regulation, as well as existing laws on chosen location.
5 Best location is one key aspect to have a successful Red Ribbon Bakeshop franchise. Study the environment and see if your business suits the surroundings.
Successful frachising 101
Becoming a successful Red Ribbon Bakeshop franchisee requires a combination of strategic planning, dedication, and hard work. Here are some steps you can take to increase your chances of success:
Research
Start by researching various franchise opportunities to find one that aligns with your interests, skills, and financial resources. Look for franchises with a proven track record of success, strong brand recognition, and a supportive franchisor.
Understand the Franchise Agreement
Carefully review the franchise agreement, including all terms, fees, and obligations. Make sure you fully understand the expectations and requirements of being a franchisee.
Financial Planning
Evaluate your financial situation and determine how much capital you have available for investment. Consider not only the initial franchise fee but also ongoing expenses such as royalties, marketing fees, and operational costs.
Training and Support
Choose a franchise that offers comprehensive training and ongoing support to franchisees. Take advantage of all training programs provided by the franchisor to learn the ins and outs of the business.
Location Selection
If the franchise involves a physical location, carefully choose the location for your business. Consider factors such as foot traffic, demographics, competition, and lease terms.
Follow the System
One of the benefits of franchising is that you're buying into a proven business model. Follow the franchisor's system and guidelines closely to increase your chances of success.
Provide Excellent Customer Service
Focus on providing excellent customer service to build a loyal customer base. Happy customers are more likely to return and recommend your business to others.
Marketing and Promotion
Take advantage of the marketing support provided by the franchisor, but also be proactive in promoting your business locally. Utilize social media, local advertising, and community events to attract customers.
Manage Finances Wisely
Keep track of your finances closely and manage expenses efficiently. Monitor your cash flow, budget carefully, and seek professional advice if needed.
Adapt and Innovate
Be willing to adapt to changing market conditions and customer preferences. Look for opportunities to innovate and differentiate your business from competitors.
Network with Other Franchisees
Connect with other franchisees within the same system or industry to share insights, experiences, and best practices. Networking with fellow franchisees can provide valuable support and advice.
Stay Committed
Building a successful franchise takes time and effort. Stay committed to your business, remain focused on your goals, and be prepared to overcome challenges along the way.
By following these methods and staying dedicated to your business, you can increase your chances of becoming a successful Red Ribbon Bakeshop franchisee.